Chinese companies plan to fund soy production in Brazil

27 April 2010

Sao Paulo, Brazil, 27 April – Chinese trading companies are considering investing up to US$2 billion in funding soy production in the Brazilian state of Goiás, according to the State’s Federation for Agriculture and Livestock (Faeg).

Alécio Maróstica, chairman of the Commission for Grain, Fibres and Oil-producing Plants of Faeg said that the aim of the Chinese companies was to eliminate intermediaries and the additional costs of international trading companies and directly finance producers.

Maróstica said that funding for production was expected to begin in the 2011/2012 season, although he did not rule out the possibility of some contracts being signed for this season.

Negotiations between the sides began at the beginning of the month, during a visit by a mission of businesspeople and representatives of the Goiás government to China, and Maróstica said that an investment of up to US$2 billion had been mentioned.

Maróstica noted that the two sides had decided to set up a working group that will analyse the business possibilities. (macauhub)